Company Setup in Umm Al Quwain

One free zone and one mainland department

The Umm Al Quwain free zone is the UAQ Free Trade Zone, a government free zone authority that publishes its rules at uaqftz.gov.ae. It began in 1987 as the Ahmed Bin Rashid Port and Free Zone, and that older name refers to the same zone. Emiri Decree No. 2 of 1987 created the free zone, and Law No. 3 of 2014 set up its current authority (zone rules, 2015 edition).

Mainland licences are a separate route and come from the Department of Economic Development. The u.ae page on Umm Al Quwain names only this zone, under its older name, Ahmed Bin Rashid Port and the Free Trade Zone. For the general comparison of routes, read company setup in the UAE.

Around the zone sits a port with four berths and an 845 metre quay (UAQ FTZ port page). The zone offers offices, co-working desks, warehouses and plots of land leased for up to 25 years. Hutchison Ports has run the port since the late 2010s.

What the UAQ Free Trade Zone licenses

The zone issues trading (commercial), consultancy, service and industrial licences, plus a freelancer permit for talent, creative and some administrative roles. A commercial licence can combine 10 similar activities or 3 different categories. Consultancy, service and freelancer permits carry two activities (zone licences page).

Legal forms are the FZE for one shareholder, the FZC for 2 to 50 shareholders, and a branch of an existing company. Its licences page says all of them are limited liability entities. Each entity needs a natural person as manager, director and secretary, and one person may hold the director and secretary roles (Company Regulations, 2014).

Each company must keep a registered office in the zone, with a shared workstation as the minimum facility. Formation itself does not require a visit to the zone office.

The AED 300,000 capital line

The zone's Company Regulations (2014) set share capital at no less than AED 300,000, or another minimum the Implementing Regulations may set. It must be fully issued and paid up on incorporation, subject to the Registrar's consent, with shares of at least AED 1,000. Those regulations also let the Authority relax or waive a requirement in whole or in part. Its licences page repeats the AED 300,000 figure.

Two other statements point the other way. The START package page is silent on capital, and the licences page also says no proof of start-up capital is required. Nothing the zone publishes says START uses a waiver.

The published position is therefore not consistent, and a headline package price does not settle it. Ask the zone in writing whether AED 300,000 applies to your package, whether it must be paid up before the licence issues, and what proof the registrar wants. File the reply with the company records.

The START package and what it leaves out

UAQ FTZ advertises its START package at AED 12,500, as of October 2026. It includes a licence for up to 10 activities, one investor visa, Emirates ID, a medical fitness test, basic medical insurance, a co-working lease and bank account help. The zone states that the licence issues in 1 working day once documents are complete.

START allows up to 5 shareholders, with 100% foreign ownership and no UAE national sponsor. It renews at the same package cost. Changes, extra visas and activity amendments may attract separate charges, and approval depends on the zone's classification and document review.

This is a zone package, not a government fee schedule. The zone publishes no tariff, and its rules refer to a tariff that its downloads page does not list.

Applications can be made remotely. Visa stamping, biometrics and the medical test need you in the UAE. Bank account help is assistance with an application. The bank decides, and Central Bank guidance listed as in force from 7 November 2025 requires it to verify customers and beneficial owners first.

Visas, renewal and selling in the UAE

Under the zone rules (March 2015 edition), only the Authority sponsors residence visas for licensees. It sets the number of visas for each licence at its absolute discretion, and a cash deposit applies for each sponsored employee. Ask the zone to confirm the visa count and deposit in writing.

Licences run for at least 12 months and must be renewed no later than 30 days before expiry. The rules do not renew a licence more than 6 months after expiry. Confirm current practice with the zone.

A UAQ FTZ licence is valid in the zone only. The zone states that doing business in the local UAE market goes through an agent, representative or distributor holding a licence from the relevant authority. For direct sales to UAE customers, price that agent into the model, or look at a mainland licence.

Mainland licences in Umm Al Quwain

Mainland businesses are licensed by the Department of Economic Development in Umm Al Quwain (ded.uaq.ae), at Al Roudah, telephone 06 7652200. It was set up in 1995 and given its current mandate by Law No. 3 of 2009, which makes a licence compulsory for any economic activity in the emirate.

Under that law, a renewal more than one month late is fined AED 200 a month up to AED 4,000, and trading without a licence is penalised (as of October 2026). To book a trade name the department takes three proposed names in Arabic with an English translation, a printed activity list and the director's ID documents; no fee is published.

The department's site shows no fee table, office rule or foreign ownership rule. Ask for the current fee table for your activity, whether a premises lease is required and what share a foreign owner may hold, in writing.

Offshore claims in Umm Al Quwain

The zone's regulations and pages describe no offshore or international business company category in Umm Al Quwain. If a quote sells an offshore company here, ask the zone in writing which licence and legal form it really carries. If you need a holding vehicle with a published registry and fee schedule, look at Ras Al Khaimah.

Federal duties and the old regulations

A company incorporated on or after 1 March 2024 must register for Corporate Tax within 3 months (FTA Decision 3 of 2024), as of October 2026. The 0% rate is limited to a Qualifying Free Zone Person on qualifying income, so free zone status alone does not settle your rate. A corporate tax consultant can confirm that test before you file.

The regulations on the zone's site date from 2014 and 2015 and can differ from current practice. A lawyer can read them against your shareholder structure before you commit funds.

Company setup in other emirates

For comparison, see company setup in Ajman, company setup in Sharjah and company setup in Dubai.

Frequently asked questions

What is the minimum capital in the UAQ Free Trade Zone?

The zone's Company Regulations (2014) state at least AED 300,000, fully paid up. Its START page is silent and its licences page says no proof of start-up capital is required, so ask the zone in writing which applies.

What does the UAQ START package cost?

AED 12,500, as of October 2026, with one investor visa, Emirates ID and a co-working lease. It renews at the same package cost, and extra visas are charged separately.

Can a UAQ free zone company sell in the UAE market?

Through a licensed agent, representative or distributor, according to the zone's rules. Direct mainland trading needs a licence from the competent mainland authority.

Who issues mainland licences in Umm Al Quwain?

The Department of Economic Development, under Law No. 3 of 2009. Its site shows no fee table or ownership rules, so ask it directly.

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